Insurance industry restores confidence with over N262bn claims settlement

The Nigerian insurance industry has reinforced its reputation as a reliable safety net for businesses and individuals, settling more than N262.5 billion in claims this year alone.
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Data released at the ongoing National Insurance Commission (NAICOM) annual seminar for insurance journalists in Abeokuta, Ogun State, revealed that insurers collectively paid N82.5 billion to individual policyholders and an additional N180 billion to businesses that suffered major losses.
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This record payout, according to NAICOM’s Commissioner for Insurance, Olusegun Omosehin, demonstrates that insurers are increasingly living up to their obligations, debunking long-held public skepticism about delayed or denied claims.
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“These payments are not just figures; they are proof that insurance works. We are ensuring that no operator escapes responsibility when it comes to genuine claims,” Omosehin said, noting that NAICOM has intensified its oversight to penalize firms that fail to meet obligations.

One of the most high-profile settlements involved Brittania-U, a Nigerian indigenous petroleum company operating the Ajapa marginal field. Following a fire incident on its FPSO Britannia UI vessel in July 2024, the company filed a claim initially valued at N108 billion. After adjustments, insurers dispatched N82.5 billion to settle the loss—far outweighing the N255 million premium the firm had paid to cover the risk.
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Beyond this, the N180 billion disbursed to “big-ticket” corporate policyholders underscores the role of insurance in protecting national assets and keeping businesses afloat after catastrophic events. Industry players say these payouts are vital in boosting trust, attracting new policyholders, and strengthening Nigeria’s economic resilience.
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Analysts believe that by demonstrating such capacity, insurers are sending a strong signal that the market is maturing. For policyholders, the message is clear: genuine risks are being compensated, and insurance is no longer a gamble but a dependable financial safeguard.